Limiting your liability is very important. Otherwise, if one person is not able to pay the financers the other people are responsible. To my knowledge, LLC is good for a small firm.

your "liability" arises out of two things: loans and business ventures. your liability on loans cannot be done away with, cuz the lender will always want some type of guarantee. how much or how little liability-risk you take on depends entirely on your leverage, your position in the bargain. ONLY the business liability can be minimized by entity structure. The funny thing is that either the llc or the c-corp or the s-corp will limit your liability. the real question about entity structure is NOT about which one will limit your liability; it is about what tax maneuvers you want to make. it's ALL about tax. and tax questions cannot be answered in the abstract, as here. this is something you must take up with someone who understands where you are with ALL your finances. good luck!

I have 3 people who are investing the company. we are all partners for the dispatching company only . At the same time everyone own trucks and trailers we have putted everything?s together in one corp. That is the worse mistake you will ever make in business. you know choosing the proper type of entity for a business is one of the most important decisions a business owner will make.

I have met a Senior Consultant for corprate services and coaching in all areas of business planning,asset protection and estate planning. This is some of the things that he had to say;: " HOW TO OWN YOUR COMPANY Own your company in a LIMITED LIABILITY LIMITED PARTNERSHIP (known as the ?LLLP? or ?Triple LP?) for enhanced protection from lawsuits. Here?s the smart way to organize the ownership: You should be (managing) General Partner of the Triple LP, with 100% control, accruing Management Fees, Perks & Benefits. Your adult children may certainly be Limited Partners, but the better choice may be to have your Living Trust, a Family Security Trust or even a Dynasty Trust as Limited Partner. This allows for the optimum mix of lawsuit protection, privacy protection and control. The Limited Partner (owning 99%) might be your Living Trust or a Family Security Trust (for stronger lawsuit protection) or for maximum flexibility and tax-efficiency, you might use both ? assigning ?X? percent to your Living Trust and ?Y? percent to the Security Trust. Only a small handful of states have adopted the new and more protective ?Triple LP? legislation which gives the Managing General Partner the same degree of protection that the Limited Partners enjoy. Remember ? you can lose in a lawsuit what it is you personally own. The LLLP allows you to achieve what John D. Rockefeller once suggested: ?Own Nothing but Control Everything.? For lawsuit protection, assets held by the Partnership do not belong to the individual partners themselves, and under recent Nevada statutory law, a creditor may not pierce the Limited Partnership. He is limited to only obtaining a ?charging order? as his sole remedy ? which may prove fruitless if the General Partner (you) decide not to make distributions. The Triple LP should also own those investments that are not inside of a Retirement Account ? i.e. Mutual Funds, Brokerage Accounts etc. Realy I have allready start changing everything, and he is working on it.

Consider placing your personal assets in a trust of sorts. Fraud however cannot be protected by any of these. Also the right type of insurance policy can also protect you. I highly recommend key man insurance which has some protection in litigation matters. A good corp attorney should be able to advise on these matters.

I think a proper attorney or even just a text book reading of types of corporations will give you a lot more information. I was reading about these cases in a high school business book, and it surprisingly gave a lot more info than I knew of.

Attorney786, thanks for the tip, but I'm realy confused with this type of business entity that have different rules: Corparations, L.L.C, C-corparation, S-corparation, and sole proprietorship. For tax reason some you pay higher tax some don't. But do they all have peace of mind by protecting your personal assets?

Thanks Accountant101, I had allready setup as L.L.C both companies...

Accountant is correct. A separate limited liability corporation setup for each company is your best bet to protect your personal assets and those of the other corporation from a suit. It's really easy to set up, the work itself should take an attorney less than an hour to prepare.

From my understanding I think its best you set up an LLC for both corps so that your liability will only go to the extent of one corp and not both. But its best you talk to a lawyer.